Oil Prices Have Fallen By 50 percent Why Haven`t Petrol Gasoline Prices
Released on: October 21, 2008, 5:48 am
Press Release Author: American Car Imports
Industry: Automotive
Press Release Summary: The price of oil is $69 a barrel. Oil prices are now less than half what they were in July this year, when they hit a record price of over $147 a barrel. The news of this dramatic drop in the oil price is buried on the inside pages of the newspapers, why hasn't this hit the headlines? Why isn't the media shouting about this as much as they are shouting about the "Financial Crisis"?
Press Release Body: 21st October 2008 For Immediate Release London England
Oil prices have fallen by 50% Why haven't petrol / gasoline prices?
The price of oil is $69 a barrel. Oil prices are now less than half what they were in July this year, when they hit a record price of over $147 a barrel. The news of this dramatic drop in the oil price is buried on the inside pages of the newspapers, why hasn't this hit the headlines? Why isn't the media shouting about this as much as they are shouting about the "Financial Crisis"? A drop in the Oil price is just the positive news we need right now as it is more than just a "feel good" factor, it is a major contributor to helping the economy move again. Fuel is needed to transport "goods to market" and for consumers to drive their cars to go and shop for the "goods" they need. Even in an economic downturn there is no alternative to trucks and cars on the road, it is the cost of using these vehicles that is significant. The major supermarkets have started to respond and brought the price of petrol down to under the "magic" GBP1. per litre at 99.9p per litre, but many of the branded petrol forecourts are still selling at GBP1.02 or GBP1.03 pence per litre. The dramatic price cut in the wholesale market has not been reflected in the price the consumer pays at the pump. The Oil Companies will have you believe that they "buy ahead" or that "it takes time for price cuts to filter though" or some other such line, the truth of the matter is that there is profiteering going on - as those arguments do not seem to apply when the price goes up! Unless Gordon Brown and the government take firmer action to insist or to force the Oil Companies to slash prices at the pump there will continue to be just be the slow trickle of a response that we have seen so far. Last week US economic data showed retail sales fell 1.2% in September, a sign that consumers were tightening their belts - but they still need to put "gasoline" in their cars and we still need to put "petrol" in our cars. Car usage remains the same in good times or bad times, consumers are just driving to different places, instead of driving to a restaurant it may be a trip to a supermarket to get the food "in" for a nice meal at home. Behaviour changes, instead of calling in a Tradesman consumers drive to the Do-It-Yourself store to get the items they need for that odd repair or redecoration and businesses in these sectors have seen a marked upturn in their trade. The US central bank's Beige Book report, which reflects the economic conditions, said the economy had showed further signs of contraction, fanning fears that the US economy is already in a recession. Some pundits expect OPEC to cut production when it next meets in November, maybe they will - but this still does not get away from the fact that the wholesale market price is 50% lower now than it was 4 months ago and this saving has not yet been passed on to the consumer at the pump. The price of the barrel of oil is lower now than at any time in the last 14 months. With the car market in a serious downturn with sales at their lowest level since the 1960's, we need the media to help, we need the media to be shouting about the dramatic drop in the price of oil, to encourage car buyers back out there knowing that their running costs will back to 2007 levels.
American Car Imports are one of the UK's leading American vehicle importers
Web Site: http://www.americancarimports.com
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